What were the payments made for patents and trade names for Chem Dry in the first year presented?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
CDI owns all rights to, interest in and goodwill of, and uses, promotes and licenses certain trade names, trademarks, trade dress, service marks and other commercial symbols, including, but not limited to, the service mark, trademark and trade name "CHEM-DRY" (the "Marks").
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In consideration of the license granted to FRANCHISEE in this Agreement, FRANCHISEE agrees to pay to CDI the following fees:
A. INITIAL LICENSE FEE
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- FRANCHISEE agrees to pay a non-recurring and non-refundable initial fee (the "Initial Fee") comprised of the following:
- a. An initial license fee in the amount as set for on the Summary Page of this Agreement for the r
B. BRAND MARKETING FUND
Recognizing the value of advertising and marketing to the development of goodwill and the public image of Chem-Dry Businesses, CDI has established a Brand Marketing Fund (the "BMF") for the advertising, marketing and public relations programs and materials CDI deems appropriate to promote the Chem-Dry brand.
FRANCHISEE agrees to contribute a continuing, non-refundable, monthly amount between $100 and $300 as determined by CDI (the "BMF Contribution").
The BMF Contribution shall be payable on the 25th day of each month beginning the same month your first Monthly Franchise Fee payment is due.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Chem-Dry franchisees acknowledge that Chem-Dry Inc. (CDI) owns all rights to the trade names, trademarks, and service marks, including the "CHEM-DRY" name. In consideration of the license granted to the franchisee, the franchisee must pay certain fees.
The FDD mentions an initial license fee, the amount of which is set forth on the Summary Page of the Franchise Agreement. Franchisees also agree to contribute to the Brand Marketing Fund (BMF) with a monthly amount between $100 and $300, as determined by CDI. This BMF contribution is payable on the 25th day of each month, starting the same month the first Monthly Franchise Fee payment is due.
However, the 2024 Chem-Dry FDD does not explicitly state the specific payments made for patents and trade names during the first year of operation. A prospective franchisee should review the Summary Page of the Franchise Agreement for the initial license fee amount and clarify with the franchisor how much of the initial fees and ongoing payments are specifically allocated to the use of Chem-Dry's patents and trade names.